Internal Trade
• A trade is buying and selling of goods and services
with the aim of earning pro ts.
• The selling and buying of goods and services
within the national boundaries are termed as
Internal trade.
The goods involved in internal trade are a part of
domestic production and are meant for domestic
consumption, thus no custom duty is imposed on
the internal trade.
Classi cation of Internal Trade
Wholesale Trade
It refers to the process of buying and selling of goods
and services in large amount with the objective of
resale or intermediate use.
Services to Manufactures
• Helps to Market the product
• Ease large scale production
• Facilitates continuity of production activity
• Bearing risk
Services to Retailers
• Provides marketing support
• Gives the bene t of specialised knowledge
• Risk sharing
• Goods avavilability
Retail Trade
It is an activity where buying of goods and services
takes place in small amount from the wholesalers and
selling them in small amount
to the ultimate consumers.
Services to Manufactures and Wholesalers
• Support in promotion
• Source of market information
• Personal selling
• Helps in distribution of products
Services to Consumers
• Gets information of new products
• Regular availability of products
• Facilitates credit facilities
• Wide selection of goods
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• Wide selection of goods
Types of Retail Trade
Itinerant Retailers
They do not have a xed place for doing business; they
always move from one place to another to persuade
people to buy their products.
• Peddlers and hawkers
• Market traders
• Street traders
• Cheap Jacks
Fixed Shop Retailers
These are small retail stores with a steady location
where they provide their goods. As a result, they do not
move from one place to another to serve their
customers.
Small
• General stores
• Speciality stores
• Street stall holders
• Second-hand goods shops
Large
• Departmental stores
• Multiple shops or chain stores
Mail Order Houses
Mail order houses are retail stores that are specialized
in selling goods through the mail. There is no immediate
contact between the customer and the supplier.
Instead, the mail order houses use advertisements in
magazines, newspapers, etc., to attract potential
consumers. The product details like quality, mode of
payment, features, and price are stated in the
advertisement.
Consumer Cooperative Stores
Cooperative stores usually purchase large quantities of
goods directly from producers or wholesalers and resell
them to consumers at low prices. The pro ts made by
cooperative stores during a year are distributed as a
bonus among members.
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Cooperative stores usually purchase large quantities of
goods directly from producers or wholesalers and resell
them to consumers at low prices. The pro ts made by
cooperative stores during a year are distributed as a
bonus among members.
Supermarkets
Supermarkets are organized on a departmental basis
where customers can buy various types of goods under
one roof. However, compared to departmental stores,
these markets do not o er certain services such as
credit facilities, free home delivery, etc. In addition, they
do not appoint salespersons to convince customers
about the quality of products.
Vending Machines
Vending machines are superb for selling pre-packaged
goods and low-cost products with consistent weight
and size. In many countries, coin-operated vending
machines conveniently sell several things, like platform
tickets, hot beverages, newspapers, soft drinks, milk,
chocolates, etc.
Goods And Services Tax (Gst)
GST is a single tax which has replaced multiple indirect
taxes levied by the central and the state governments
on the supply of goods and services from the
manufacturer to the consumer. It is implemented from
July 1, 2017.
Features of GST
• It is a national indirect tax as its territorial spread is
in the whole country, including Jammu and
Kashmir.
• There are four tax slabs for all good or services.
They are 5%, 12%, 18% and 28%.
• Its is calculated only in the “Value addition”.
• CGST, SGST and IGST are levied under the aegis
of the GST Council.
• It is based on the principle of destination.
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